Nanotechnology has brought a revolution in the field of science, which has subsequently lead to development of novel dosage forms such as niosomes, liposomes and proniosomes. Proniosomes overcome the demerits involved with niosomal and liposomal drug delivery systems. Proniosomes are liquid crystalline compact niosome hybrids which upon hydration form niosomes. They help in reducing physical stability problems involved with niosomes such as leaking, fusion, aggregation and provide convenience in dosing, distribution, transportation and storage showing improved results than conventional niosomes. This review focuses on different aspects of proniosome such as preparation, characterization, drug release, applications, merits, demerits, present scenario in market and future trends.